In the News
Consumers are left in the dust again after a significant data breach settlement. In Zappos Offers Users 10% Discount in 2012 Breach Settlement, Elizabeth Montalbano at Threatpost discusses Zappos’ settlement from a major 2012 data breach. Montalbano explains that despite the 2012 data breach impacting 24 million Zappos customers, the settlement has Zappos only offering a 10% discount to those affected. To make this even worse, Montalbano states that legal fees for the settlement were over 1.5 million dollars.
Our Take
Data breach settlements intend to compensate victims for the damages that data misuse brings. However, settlements like the one with Zappos 2012 data breach are insulting to the value of personal information stored in company rewards accounts. To know that your personal information was breached is bad enough, but to learn that you will be repaid with a mere 10% store discount is an additional burn. Such settlements emphasize the lack of value for consumer data and its protection. If companies are not going to protect your data, it is essential that consumers act in more vigilant ways when creating accounts and shopping online. Companies are beginning to differentiate themselves as some take initiatives to emphasize consumer data security. Especially when shopping online and making financial purchases, take this into account. Shop at retailers that you can trust, but always be cautious and stay informed.
Recommendations
How can you better protect your data when shopping online?
- Understand the risks of putting your personal information into the world, and only share what you have to, especially when making purchases online
- Minimize the number of accounts that have direct access to your bank account or card numbers
- Don’t reuse your account passwords, and take advantage of multi-factor authentication where possible
- Make purchases at reputable online retailers
- Check your email, financial accounts, and credit reports regularly for abnormal activities
- Stay up to date on the news regarding recent fraud and phishing attacks to see if you may have been affected